Foundations of Investing

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1WHERE

AM I TODAY?

2WHERE

WOULD I LIKE TO BE?

3CANI GET

THERE?

4HOW DO

I GET THERE?

5HOW CAN I STAY ON TRACK?

MY FINANCIAL

NEEDS

®

2MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

“Why” Leads to “How”

Develop a Strategy

Invest for the Long Term Focus on What You Can Control

DiversifyStick with Quality

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Develop a StrategyRule 1

4MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

Stick with QualityRule 2

GOLDSI

LVE

R FADS TECHINTERNET

OILDIGITAL

REAL ESTATE

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DiversifyRule 3

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VARIETY

DIVERSIFY

Bonds7MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

Why Bull & Bear?8MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

$20

COMPANY SHARES

$30

CAPITAL APPRECIATION

$10BOUGHT SHARE OF STOCK FOR

$20

SOLD SHARE OF STOCK FOR

$30

Stocks9MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

Stocks Not Paying Dividends Stocks Paying Dividends

9.0%

2.6%

Stick with Quality

Source: Ned Davis Research, 1/31/1972 – 8/31/19. Uses indicated annual dividends on a rolling 12-month basis. Past performance may not be an indication of future results. The S&P 500 is an unmanaged index and is not meant to depict an actual investment. Does not include transaction costs or taxes. Dividends can be increased, decreased, or eliminated at any point without notice. Further distribution prohibited without prior permission. Copyright © 2019 Ned Davis Research, Inc. All rights reserved.

Dividends Are ImportantAverage Annual Return

10MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

Quality Makes a Difference

Source: Ned Davis Research, 1/31/1972 – 8/31/2019. Uses indicated annual dividends on a rolling 12-month basis. Past performance may not be an indication of future results. The S&P 500 is an unmanaged index and is not available for direct investment. Does not include transac-tion costs or taxes. Dividends can be increased, decreased, or eliminated at any point without notice. Further distribution prohibited without prior permission. Copyright © 2019 Ned Davis Research, Inc. All rights reserved.

22.0% 21.1%

-20.2%

-33.8%

Bull Markets Bear Markets

25%

20%

15%

10%

5%

0%

-5%

-10%

-15%

-20%

-25%

-30%

-35%

n Dividend-paying stocksn Non-dividend-paying stocks

Average Annual Return

11MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

INVESTORS

INVESTORSINVESTORS

INVESTORS

GROWTH INCOME GROWTH & INCOME

Packaged Investment Products12MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

Diversification

Multiple Companies

Professional Management

Benefits of Mutual Funds13MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

STOCKS DIVIDENDS=CAPITAL GAINSDISTRIBUTION$ $

SHARE PRICE OFMUTUAL FUNDS

BONDS INTEREST= %

Mutual Funds Earnings14MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

Invest for the Long TermRule 4

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$26

$24

$22

$20

$18

$16

$14

$12

$10

$8

$6

$4

$2

$0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Dollar Cost Averaging – $417/Month

Shar

e P

rice

Total Purchased: 300 Shares

Average Price: $17/share21

2628

3532

2628

2119

24

1921

Number of Shares Purchased

$26

$24

$22

$20

$18

$16

$14

$12

$10

$8

$6

$4

$2

$0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Lump Sum – $5,000

Shar

e P

rice

Total Purchased: 250 Shares

Average Price: $20/share

Source: Edward Jones. These charts are for illustrative purposes only and are not intended to represent the performance of any security. These illustrations do not include commissions or fees. Past performance does not guarantee future results. Stock prices can also go down, which could result in a loss of principal invested.

Systematically Investing vs. Lump-sum Investment

Systematic Investing16MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.

Focus on What You Can ControlRule 5

PlanBudgetReview

17

You can’t

control:Stock

market

Tax laws

Every investment

has some risk

You can control:Saving and spending habits

Having an emergency fund

Your level of debt

MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED. 18

Summary

Develop a Strategy

Stick with Quality

Diversify

Invest for the Long Term

Focus on What You Can Control

Rule 1

2

3

4

5

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&AnswersQuestions

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